The UK Chapter of The Legal 500: Private Equity Comparative Guide 2023 – authored by private equity transaction partners John Newton and myself, alongside finance partner Alex Robb and tax partner Andrew Howard – considers the key legal issues for PE deal makers doing deals in the UK.
The chapter is structured as a Q&A and concisely addresses the key legal issues to be considered when doing PE in the UK, as well as highlighting some recent legal updates and trends including:
- The continued prevalence of secondary transactions and continuation / affiliated fund transactions, in particular where a third party investor takes a significant minority position to set the arm’s length price.
- The introduction of the National Security and Investment Act on 4 January 2022 and how financial sponsors have approached notifications under this regime.
- An overview of the key areas of negotiation between borrowers and lenders including on syndicated financings.
- Some examples of mechanisms, including deferred consideration mechanisms, to help bridge a buyer’s financing gaps.
For the full article, please click here.
“In the last two years, continuation fund transactions have become an increasingly popular route to achieving liquidity for existing LPs while allowing the sponsor to retain control, continue to grow their assets under management or ‘AUM’ and to not miss out on potential future upside in respect of the particular portfolio company.”